Pension Protection Fund, London, is looking for private equity managers running energy funds, a spokeswoman said.
The £16 billion ($25.8 billion) pension fund, which handles payments of defined benefit funds for insolvent companies, is increasing its investments in private equity, through pooled funds, in the energy sector. Its total investment over a period of time, the spokeswoman said, will be about £400 million to £500 million.
The PPF's board is looking to invest in funds that provide equity to companies that are active in the traditional energy sources of oil and gas, as well as closely related sectors.
The PPF is looking for two or three money managers that invest in companies mainly in North America and Organization for Economic Co-Operation and Development countries, the spokeswoman said in an e-mailed comment.
The move will diversify the PPF's alternatives portfolio. The fund announced in July that it was increasing its target allocation to alternatives to 22.5%, from 20%; its current private equity target allocation is 4%.